The Vehicle and Assets Dealers Union of Ghana (VADUG) has called for the government to expedite the implementation of an extensive auto financing policy that allows financial institutions to extend credit facilities to car buyers.
Concerns about excessive port taxes were also voiced by the union, which criticized the Ghana Revenue Authority’s Customs Division for imposing ‘burdensome’ fees on car importers and buyers. The charges included import duty, import VAT, the GHS Disinfection Fee, the COVID-19 Health Recovery Levy, vehicle examination fees, and the African Union Import Levy.
The Union asserts that regardless of the vehicle’s actual purchase year, importers must pay taxes based on the initial purchase price of the original model year. Brand-new cars under six months old are not subject to depreciation-related fines, however, vehicles older than five years are subject to an additional 50% penalty depending on the original value.
VADUG Executive Secretary, Frank Atanley Kofigah, emphasized the need to urgently review the “obnoxious taxes” at the port. He also highlighted the need for an easily accessible car finance system by giving global instances where buyers can purchase cars with a little down payment.
The Importers and Exporters Association of Ghana has expressed its support for VADUG, believing their call for a national vehicle financing scheme would reduce the country’s reliance on older, high-emission vehicles and promote the purchase of newer, more efficient models.
On his part, Samson Asaki Awingobit, Executive Secretary of the Association, stated that driving will remain a luxury for many until the government proposes a policy allowing both public and private workers to buy cars.
